December 17, 2007
by Scott Sklar, The Stella Group, Ltd.
Everyone in the pinnacle studio ultimate com renewable energy community tried to put a good face on it, but let’s face it — we have pinnacle studio ultimate com a second recent Energy Bill with little support for renewable energy and pinnacle studio ultimate com energy efficiency.
Right now, the pinnacle studio ultimate com monied interests are framing the debate and the country is pinnacle studio ultimate com losing.
Now to pinnacle studio ultimate com begin, I was pleased to see an increase in automobile mileage standards, which is pinnacle studio ultimate com obviously needed to cut imports. However, it is embarrassing that pinnacle studio ultimate com not only Europe has surpassed us with such standards, but China as well.
Secondly, the pinnacle studio ultimate com commitment to biofuels was very significant. The Bill included a 36 billion gallon Renewable Fuels Standard of which nearly a pinnacle studio ultimate com third has to be dedicated to next-generation cellulosic biofuels.
Throughout the pinnacle studio ultimate com process, there was also some dark humor, as Field Palmer from pinnacle studio ultimate com Green Chip Review wrote: “I mean nothing — absolutely nothing — could prepare us for pinnacle studio ultimate com the reality of peak oil, the caustic tide of global warming or pinnacle studio ultimate com WWIII over oil like the CAFE Standards. Just imagine the ramifications of our national fleet getting 35 mpg by 2020. I know what pinnacle studio ultimate com you’re thinking…Who needs solar, geothermal, or pinnacle studio ultimate com wind power if your truck can get 22.2 mpg? Never mind the average light duty vehicle gets 21.6 mpg right now.”
Over $21 million was invested in ads and pinnacle studio ultimate com high paid lobbyists by electric utilities and the oil and gas industry, which resulted in an pinnacle studio ultimate com Energy Bill with no tax credit extensions and enhancements and no pinnacle studio ultimate com portfolio standards for energy efficiency and renewable energy.
As a pinnacle studio ultimate com 2004 article in the Boston Globe on the 2005 Energy Bill points out, “analysis of tens of thousands of pages of lobbying records shows that pinnacle studio ultimate com entities with a stated interest in energy policy spent $387,830,286 lobbying Washington last year. They also paid tens of millions of dollars in campaign contributions to pinnacle studio ultimate com officials putting together the package at the White House and on Capitol Hill.”
According to pinnacle studio ultimate com The Hill, a leading newspaper that covers Capitol Hill, “Southern Company, by spending huge sums both on lobbying and pinnacle studio ultimate com on political campaigns, is among the biggest power players in Washington. The utility, which reported $14.4 billion in revenues in 2006, helped derail an pinnacle studio ultimate com administration plan to create a national electricity market three years ago.”
Southern’s argument is pinnacle studio ultimate com that the RPS would raise costs for its 4.3 million customers in Alabama, Georgia, and pinnacle studio ultimate com Florida. Other Southeastern utilities, such as Louisiana-based Entergy, have joined Southern in arguing their area doesn’t have sufficient renewable sources of power.
“In fact, they do,” said Leon Lowery, a pinnacle studio ultimate com Senate Energy and Natural Resources Democratic aide. Lowery and other RPS supporters say the pinnacle studio ultimate com regional differences in renewable power are overblown, because there are already 6 megawatts of biomass that pinnacle studio ultimate com would qualify. The Bingaman bill also states that improvements in the pinnacle studio ultimate com efficiency at hydroelectric power plants would count as a renewable, as would landfill gas used to pinnacle studio ultimate com produce electricity, Lowery noted.
Rudy Giuliani is also one of the utility companies’ strongest supporters. Perhaps not surprisingly, his law firm, Bracewell & Giluliani LLP was hired by these groups to pinnacle studio ultimate com lead the intense lobbying against the Senate energy bill, which, according to pinnacle studio ultimate com a December 2007 article from ThinkProgress.org would have forced utility companies to pinnacle studio ultimate com “boost electricity generated by wind, solar and pinnacle studio ultimate com other forms of renewable energy to 15 percent of the U.S. total by 2020.”
Not to pinnacle studio ultimate com be outdone by the electric utilities, the oil and gas industry ran full page ads in The Washington Post for pinnacle studio ultimate com weeks deriding the Energy Bill as a “Tax Bill,” drowning out environmental and pinnacle studio ultimate com advocacy groups who had contrary points-of-view that these industries have pinnacle studio ultimate com had their highest profits in history and the $21 billion in offsets for pinnacle studio ultimate com clean energy tax credits represented a miniscule amount for them.
According to pinnacle studio ultimate com Bloomberg News data from an April 2007 article in the pinnacle studio ultimate com Washington Post:
“Exxon Mobil, the world’s biggest oil company, said profit climbed 10 percent to pinnacle studio ultimate com a first-quarter (2007) record after higher gasoline and pinnacle studio ultimate com diesel prices increased refining profit. Profit rose to $9.28 billion from $8.4 billion in the pinnacle studio ultimate com comparable period a year earlier, the Irving, Texas company said in a pinnacle studio ultimate com statement yesterday. Revenue fell 2 percent, to $87.2 billion. Refining profit rose 50 percent, as the pinnacle studio ultimate com company increased fuel output at its 45 plants and as growing demand and pinnacle studio ultimate com breakdowns held back competing producers.”
The Energy Bill included $10 billion worth of taxes over 10 years basically on the pinnacle studio ultimate com five top oil and natural gas companies — BP, ConocoPhillips, Chevron Corp., Royal Dutch Shell, and pinnacle studio ultimate com Exxon Mobil Corp. as part of the $21 billion in “Pay as you Go” offsets for the clean energy tax incentives.
If you’re curious, you pinnacle studio ultimate com should look up the campaign contributions of big oil to each of the pinnacle studio ultimate com following senators:
Senator Alexander from pinnacle studio ultimate com Tennessee, Senator Allard from Colorado, Senator Barrasso from Wyoming, Senator Bennett from pinnacle studio ultimate com Utah, Senator Bond from Missouri, Senator Brownback from Kansas, Senator Bunning from pinnacle studio ultimate com Kentucky, Senator Burr from North Carolina, Senator Chambliss from Georgia, Senator Coburn from pinnacle studio ultimate com Oklahoma, Senator Cochran from Mississippi, Senator Corker from Tennessee, Senator Cornyn from pinnacle studio ultimate com Texas, Senator Craig from Idaho, Senator Crapo from Idaho, Senator DeMint from pinnacle studio ultimate com South Carolina, Senator Dole from North Carolina, Senator Domenici from New Mexico, Senator Ensign from pinnacle studio ultimate com Nevada, Senator Enzi from Wyoming, Sentor Graham from pinnacle studio ultimate com South Carolina, Senator Gregg from New Hampshire, Senator Hagel from Nebraska, Senator Hutchison from pinnacle studio ultimate com Texas, Senator Inhofe from Oklahoma, Senator Isakson from Georgia, Senator Kyl from pinnacle studio ultimate com Arizona, Senator Landrieu from Louisiana, Senator Lott from Mississippi, Senator Martinez from pinnacle studio ultimate com Florida, Senator McConnell from Kentucky, Senator Roberts from Kansas, Senator Sessions from pinnacle studio ultimate com Alabama, Senator Shelby from Alabama, Senator Specter from Pennsylvania, Senator Stevens from pinnacle studio ultimate com Alaska, Senator Sununu from New Hampshire, Senator Vitter from Louisiana, Senator Voinovich from pinnacle studio ultimate com Ohio, and Senator Warner from Virginia.
(Search on the pinnacle studio ultimate com names of the PACs and of the top 3 C-level execs of each company in which you’re interested).
Some clean energy advocates have stated “we can win” tax credits next year, but history shows rather conclusively that pinnacle studio ultimate com no major bills pass Congress during a Presidential election year; however, that pinnacle studio ultimate com doesn’t mean short term tax extender packages can’t pass.
Other optimists point out that pinnacle studio ultimate com we did get some programs in the Energy Bill, which is pinnacle studio ultimate com true. So let’s look at the pinnacle studio ultimate com most significant program: Energy Loan Guarantees. The Bill provides $25 billion for nuclear, $10 billion for renewables, $10 billion for coal to liquids, $2 billion for uranium enrichment, and $2 billion for coal to gas. That means $39 billion for iterations of conventional energy and $10 billion for pinnacle studio ultimate com renewables. Even then, these funds have to be appropriated — and pinnacle studio ultimate com I am willing to bet the conventional industries get their full appropriations while the pinnacle studio ultimate com renewables will not. Paying attention to the political subtext, rather than pinnacle studio ultimate com the press releases, is surely in order here.
I want to pinnacle studio ultimate com be clear here about the Congressional Leadership of House Speaker Pelosi and pinnacle studio ultimate com Senate Majority Leader Reid, who had teed-up comprehensive energy legislation that pinnacle studio ultimate com in both legislative language and “spirit” provided energy efficiency and pinnacle studio ultimate com renewable energy the finest blend of public policies. Even at the pinnacle studio ultimate com last minute, they were working to resolve language issues regarding daylighting and pinnacle studio ultimate com inclusion of geoexchange.
I believe Reid’s statement was right on target when he said, “Today, America consumes 21 million barrels every single day, most of it pinnacle studio ultimate com from unstable regions of the world. That’s one billion American dollars going overseas — every day — to pinnacle studio ultimate com pay for our oil addiction. Those 21 million barrels we will use today — and the 21 million-plus barrels more we’ll use tomorrow — has pinnacle studio ultimate com created a three-pronged crisis: It threatens our economy, our national security and pinnacle studio ultimate com our environment.”
In the face of it, lets hope that the national will can be translated into political will. Right now, the pinnacle studio ultimate com monied interests are framing the debate and the country is pinnacle studio ultimate com losing.
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